Americold Realty Trust(COLD)2024-11-07 21:16Warehouse Operations - As of September 30, 2024, the company operates 239 warehouses globally, totaling approximately 1.4 billion cubic feet, with 195 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America[119]. - The number of total warehouses as of September 30, 2024, was 239, including 9 non-same store warehouses and 4 third-party managed warehouses[151]. - The company has exited less strategic and profitable markets, including the sale of certain warehouse assets and the exit of certain managed warehouse agreements[122]. Financial Performance - For the three months ended September 30, 2024, total warehouse segment revenues were $612.2 million, a 1.6% increase compared to $602.6 million in the same period of 2023[175]. - Warehouse segment NOI increased by 13.0% during the three months ended September 30, 2024, primarily due to increased NOI in the same store portfolio of $19.8 million[178]. - Same store contribution NOI for the warehouse segment was $198.6 million, reflecting an 11.7% increase compared to $177.8 million in the prior year[175]. - Total warehouse segment revenues increased by $58.3 million, or 3.3%, on a constant currency basis during the nine months ended September 30, 2024, compared to the same period in the prior year[216]. - Same store revenues totaled $1,753,957 thousand, with a constant currency increase of 3.0% during the nine months ended September 30, 2024[218]. Cost Management - The total warehouse segment cost of operations decreased by $6.8 million, or 1.6%, during the three months ended September 30, 2024, compared to the prior year[177]. - Total warehouse segment cost of operations decreased by $25.2 million, or 2.0%, on a constant currency basis during the nine months ended September 30, 2024, compared to the same period in the prior year[215]. - Same store cost of operations was $395.9 million, a decrease of 1.6% compared to $400.3 million in the prior year[180]. Project Orion - The company has incurred $138.3 million in implementation costs related to Project Orion, aimed at enhancing technology systems and business processes, with an unamortized balance of $76.0 million as of September 30, 2024[129]. - Project Orion expenses increased by $18.4 million primarily due to increased contract labor and professional fees[199]. - Project Orion expenses increased by $33.7 million, primarily due to increased contract labor and professional fees[238]. Cybersecurity - The company experienced a cybersecurity incident on April 26, 2023, which partially impacted operations, but all locations resumed operations at pre-cyberattack levels by June 30, 2023[124]. - Cyber incident related costs decreased by $4.7 million during the three months ended September 30, 2024 compared to the same period in the prior year[200]. - Cyber incident related costs decreased by $31.8 million, partially due to a $10.0 million payment for business interruption insurance[239]. Debt and Financing - The company sold 13,244,905 common shares under the Prior ATM Equity Program for net proceeds of $412.6 million, which were used to repay a portion of revolver borrowings[263]. - On September 12, 2024, the company completed a public offering of $500 million aggregate principal amount of senior unsecured notes with a 5.409% interest rate, due September 12, 2034[265]. - As of September 30, 2024, the total outstanding indebtedness is $3,552.7 million, with fixed-rate debt constituting 92.4% and variable-rate debt 7.6%[274][277]. - Interest expense for the three months ended September 30, 2024, was $34.255 million, compared to $35.572 million in the same period of 2023, indicating a decrease of 3.7%[256]. Revenue and Income - Total revenue for the nine months ended September 30, 2024, was $1,213.1 million, compared to $1,585.8 million for the year ended December 31, 2023, reflecting a decrease[307]. - Operating income increased to $110.7 million for the nine months ended September 30, 2024, from $74.5 million for the year ended December 31, 2023[307]. - NAREIT FFO for the nine months ended September 30, 2024, was $110.8 million, compared to $55.3 million for the same period in 2023[251]. Market and Economic Conditions - Economic occupancy is a key driver of financial results, with a focus on establishing contracts with fixed storage commitments to mitigate seasonal impacts[154]. - The company aims to transition existing customers to fixed storage commitments during contract renewals, enhancing revenue stability[154]. - A 100 basis point increase in market interest rates would increase annual interest expense by approximately $2.7 million[310].